Irish importer Fyffes has reported strong results for the first half of the year, including a 40 per cent increase in pre-tax profits to €31m, prompting it to increase its annual earnings target (before interest, tax and amortisation) to between €38m and €42m.
The group posted adjusted earnings of €31.5m for January to June, around 36.5 per cent higher than the equivalent figure for the first half of 2013.
Group revenue for the period rose 3 per cent to €490.2m, while total revenue – including the company’s share of sales through joint ventures such as Inter Weichert in Germany, vanWylick in the Netherlands and Turbana in the US – was up 1.3 per cent year-on-year to €592.8m.
Fyffes’ interim results were published on the same day that it confirmed along with its prospective merger partner Chiquita Brands International that the two companies have identified a further US$20m in cost savings that can be achieved following the planned formation of ChiquitaFyffes, bringing the expected total of what they referred to as “annualised pre—tax cost synergies” to US$60m within the first two years.
“Fyffes is pleased Chiquita recently rejected the unsolicited offer from the Cutrale Group and the Safra Group and reaffirmed its recommendation to its shareholders to vote to approve the definitive merger agreement between Fyffes and Chiquita,” chairman David McCann commented.
“Fyffes and Chiquita remain committed to the transaction and are continuing to work together to complete the combination as expeditiously as possible.”
Both companies have sent out documents to shareholders ahead of shareholder meetings scheduled for 17 September, at which point the merger plans are set to entire the final stage of proceedings.
A merger clearance review currently being conducted by the European Commission is expected to end two days later.
